Allied Merchandiscrs was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller)products. Prepare journal entries to record the following transactions for Allied assuming it uses a per-petual inventory system and the gross method. (Allied estimates returns using an adjusting cntry at cachyear-end.)Exercise 5-4Recording sales, salesreturns, and salesallowancesP2May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2.000 units at aprice of $10 cash per unit (for a total cost of $20.000).5 Allied sold 1.500 of the units in inventory for S14 per unit (invoice total: S21.000) to Macy Co.under credit terms 2/10, n/60. The goods cost Allied S15,000.7Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1.750).Allied restores the units, which cost $1.250, to its inventory.8 Macy discovers that 200 units are scuffed but are still of use and. therefore, keeps the units.Allied sends Macy a credit memorandum for S300 toward the original invoice amount tocompensate for the damage.15Allied receives payment from Macy for the amount owed on the May 5 purchase: payment isnet of returns, allowances. and any cash dliscount.CS Scanned with CamScannerin

Name: Allied Merchandiscrs was organized on May 1. Macy Co. is a major cust
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Description: Allied Merchandiscrs was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller)products. Prepare journal entries to record the following transactions for Allied assuming it uses a per-petual inventory system and the gross method

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Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products. Prepare journal entries to record the following transactions for Allied assuming it uses a per- petual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) Allied made its first and only purchase of inventory for the period on May 3 for 2.000 units at a price of S10 cash per unit (for a total cost of S20.000). Allied sold 1.500 of the units in inventory for $14 per unit (invoice total: $21.000) to Macy Co. under credit terms 2/10. n/60. The goods cost Allied S15,000. 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: S1.750). Allied restores the units, which cost $1.250. to its inventory. 8 Macy discovers that 200 units are seuffed but are still of use and. therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase: payment is net of returns, allowances. and any cash discount. May 3 in

Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products. Prepare journal entries to record the following transactions for Allied assuming it uses a per- petual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) Allied made its first and only purchase of inventory for the period on May 3 for 2.000 units at a price of S10 cash per unit (for a total cost of S20.000). Allied sold 1.500 of the units in inventory for $14 per unit (invoice total: $21.000) to Macy Co. under credit terms 2/10. n/60. The goods cost Allied S15,000. 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: S1.750). Allied restores the units, which cost $1.250. to its inventory. 8 Macy discovers that 200 units are seuffed but are still of use and. therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase: payment is net of returns, allowances. and any cash discount. May 3 in

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...

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Required Information [The following Information applies to the questions displayed below.] Warnerwoods Company uses a perpetual Inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 March 9 March 18 March 25 March 29 Perpetual FIFO Perpetual LIFO Date March 1 March 5 Average March 5 March 9 Activities Beginning inventory Purchase Sales Complete this question by entering your answers in the tabs below. March 18 Purchase Purchase Sales Totals Average March 18 HTT 3. Compute the cost assigned to ending Inventory using (a) FIFO. (b) LIFO. (c) weighted average, and (d) specific Identification. For specific Identification, units sold include 105 units from beginning inventory, 235 units from the March 5 purchase. 85 units from the March 18 purchase, and 125 units from the March 25 purchase. March 25 Average March 25 March 29 Totals Compute the cost assigned to ending inventory using weighted average. Note: Round your average cost per…
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At the end of May, the sales journal of Mountain View appears as follows. Assume beginning inventory balance for May to be $13,998. Date AccountDebited Invoice Number PR Accounts Receivable Dr.Sales Cr. Cost of Goods Sold Dr.Inventory Cr. May 6 Aaron Reckers 190 4,160 3,162 10 Sara Reed 191 3,220 2,657 17 Anna Page 192 1,433 843 25 Sara Reed 193 573 337 31 Totals 9,386 6,999 Mountain View also recorded the return of defective merchandise with the following entry. Date. General Journal Debit. Credit May 20. Sales Returns and Allowances. 425(debit) Accounts Receivable—Anna Page 425 (credit) Customer returned (worthless) merchandise. 3. Prepare a schedule of accounts receivable.
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